Stealth Fitness Center issues 9%, 9-year bonds with a face amount of $100,000. The market interest...

Stealth Fitness Center issues 9%, 9-year bonds with a face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually.

At what price will the bonds be issued? Use Table 2 and Table 4. (Round "PV Factor" to 5 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount.)

Tryna find the Issue price__________

Expert Solution

PPlease upvote if the solution is helpful. Thanks.

ekkarill92 answered 2 years ago

BA Corp issues 5.0%, 5-year bonds with a total face amount of $1,000,000. The market interest...

BA Corp issues 5.0%, 5-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 5.2%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET. 1. $___________How much will be paid in interest each interest payment? 2. $___________ (rounded to nearest dollar). What is the present value of the interest payments? 3. $___________ (rounded to nearest dollar). What is the issue price of...

TR issues 6.9%, 5-year bonds with a total face amount of $1,000,000. The market interest rate...

TR issues 6.9%, 5-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 6.8%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you’ve completed the entire problem). 4. $___________ (rounded to nearest dollar). What is the issue price of the bond? 5. $___________ (rounded to nearest dollar). When the company records the first interest payment, how much...

Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $54,000. The market interest...

Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $54,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price will the bonds issue? face amount interest payment market interest rate period to maturity issue price ( show the math for this one please)

Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $42,000. The market interest...

Ultimate Butter Popcorn issues 6%, 15-year bonds with a face amount of $42,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. What is the issue price?

A company issues 7%, 9-year bonds with a face amount of $70,000 for $74,813 on January...

A company issues 7%, 9-year bonds with a face amount of $70,000 for $74,813 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate...

ABC Co. issues a 10 Year, 8% Bonds, the face value is 100,000 and market rate...

ABC Co. issues a 10 Year, 8% Bonds, the face value is 100,000 and market rate is 10%, it is compounded semi-annually. 1. Will the bond be issued at a premium or discount? Why? 2. Calculate the Bond Price upon issue. 3. Prepare the Amortization Table using the Effective method

1. Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market...

1. Ultimate Butter Popcorn issues 5%, 15-year bonds with a face amount of $58,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually. At what price will the bonds issue? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round"Market interest rate" to 1 decimal place.) Face Amount= Interest Payment= Market Interest Rate= Periods to...

a. ABC Co. issues $100,000, 4%, 10 year bonds when the prevailing market rate of interest...

a. ABC Co. issues $100,000, 4%, 10 year bonds when the prevailing market rate of interest is 5%. The bonds pay interest annually. Compute the issue price of the bonds. b. ABC Co. issues $100,000, 4%, 10 year bonds when the prevailing market rate of interest is 5%. The bonds pay interest semi-annually. Compute the issue price of the bonds. c. ABC Co. issues $500,000, 10%, 10 year bonds when the prevailing market rate of interest is 9%. The bonds...

On January 1, 2016, Calvert Company issues 9%, $100,000 face value bonds for $103,673.08, a price...

On January 1, 2016, Calvert Company issues 9%, $100,000 face value bonds for $103,673.08, a price to yield 7%. The bonds mature on December 31, 2017. Interest is paid semiannually on June 30 and December 31. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare the journal entries to record the interest payments on June 30, 2016,...

. Collins Company issues term bonds with a face value of $100,000 on January 1, Year...

. Collins Company issues term bonds with a face value of $100,000 on January 1, Year One. The bonds have an annual stated rate of interest of 4 percent and a life of ten years. They pay interest semiannually on June 30 and December 31. The bonds were issued to yield an effective annual interest rate of 6 percent. The present value of $1 in 10 periods at a 4 percent interest rate is $0.67556, in 10 periods at 6...

Question